Consumer Spending Increases,
But at the Expense of Savings

WASHINGTON -- Consumer spending rose strongly in June, the Commerce Department said, providing more evidence of a rebounding economy -- but at the cost of a sharp drop in personal savings.

Buoyed by strong sales of durable goods such as cars and appliances, spending rose by 0.8% in June, following a 0.1% decrease in May. Personal incomes also rose for the month, the department said, but only by 0.5%, driving the personal-savings rate...